Every business seeks to provide solutions and satisfy the needs of its target audience. While online businesses are not so different in this respect, the approaches are unique, and if you are going to run an online business, you must address its ever-dynamic demands and conditions.
Email marketing, one of the oldest marketing tactics, has been established as one of the most effective digital marketing strategies for digital businesses. Of course, tending to other aspects of your business can take your mind away from email marketing, which is why it is important to find the most convenient mass email tool to automate the process.
Unfortunately, email marketing has been given a bad reputation in marketing circles, with some tagging it a “dead end”, and forcing so many online businesses to chase other marketing options. This myth has not only ruined businesses but has also rendered many short.
In this article, however, we’ll talk about five facts about email marketing for online businesses, showing how email marketing has the power to influence the buying choices of individuals.
Let’s get to the it, shall we?
What is Email Marketing?
Email marketing is a lot more than just piling messages into inboxes, and statistics reveal from time to time that email marketing provides enough efficient numbers for businesses all over. As a matter of fact, in 2020, 306.4 billion emails were traded between individuals, and in 2022 that number has risen up to 333.2 billion emails.
Email marketing goes beyond utilizing emails to promote products and services; it extends over a wide range of business strategies. You can use email marketing to develop relations with customers, reach out to potential ones, and keep them informed. You can also tell your brand’s story via email marketing; showing your customers that you understand their pain points and can solve their problems.
Online businesses tend to use email marketing to customize their marketing messages accordingly as one of the most cost-effective forms of digital marketing, with a very robust conversion rate. Even with the increasing popularity of chat apps, social media, and messengers, email marketing has solidified as the most central to digital communication that continues to grow. The number of global email users is estimated to reach a total of 4.6 billion users by 2025, which is an approximate increase of six hundred thousand users, compared to the 4 billion in 2020.
In advertising, email has produced higher click-through rates than social media posts. Notably, email marketing is persuasive and delivers great results for your online business, with a variety of other benefits, and newsletters are the most common type of mail in email marketing.
Source: Maven Marketing Lab
Let’s discuss the five most intriguing facts about email marketing.
5 Facts About Email Marketing for Online Businesses
1. Emails deliver strong ROI
ROI is undoubtedly an essential tool in quantifying how effective your marketing efforts are, and when it comes to email marketing, statistics show that it trumps other digital marketing methods. For every dollar expended on emails, marketers get more benefits than any other endeavor, and it is established as the most lucrative marketing practice out there, to say the least.
If you intend to make the most of your marketing strategies, then you should not neglect email marketing. A successful email marketing campaign surely demands a huge investment of resources, where you must notably pay attention to how much you will get back so efforts will not be wasted.
The global email marketing sector was valued at 7.5 billion U.S. dollars in 2020, which is expected to increase to 17.9 billion by 2027. With every dollar spent, the ROI of email marketing is averaged at $38. A well-thought-out email marketing strategy will make you money, and while there are tons of other benefits, this is perhaps the most prominent.
2. Interactive emails are powerful for retaining and making new customers
While exploring strategies for email marketing, numerous businesses excuse the fact that emails are used and read by humans. Humans are your target audience, and what makes any relationship strong is effective communication.
Thanks to the digital age, customer communication has become easier, and you can reach millions across different locations with just the push of a button. Even better, is the fact that you can personalize your emails for each customer, making them feel special and seen.
Looking at the frequency with which consumers prefer to receive emails, Statista noted that 49% of consumers would love to receive promotional mails from their brand on a weekly basis which may also help them to find a job, further emphasizing the importance of customer interaction and giving an answer to the concern of oversaturating customers with promotional emails.
Furthermore, your marketing emails should promote user engagement with newer and better engagement practices for interaction. For instance, adding videos to your emails can rapidly increase click rates by 300%. While videos can do the trick, there are other methods of interactive media including sliders, collapsible menus, and GIFs.
Email marketing tools have made it easier for businesses to create emails that are easy to read and easy-to-understand. Some tools can even remove background from images, have a feature such as a photo collage maker to include them in emails, making it possible for businesses without having a professional graphic designer or an expensive computer software package to send emails.
Businesses can use these tools for email marketing or for creating collages and images for their websites.
3. Email marketing is neither costly nor time-consuming
Perhaps the most dangerous myth about email marketing is that it is costly and time-consuming. This is usually because most believe that emails must be colorful and filled with designs, which is not true.
There are numerous benefits associated with sending plain text emails, including the fact that plain text mails consume less time compared to the time employed in designing crazy headers for emails. Sending emails manually is a thing of the past, and the same applies to bulk messaging practices without any strategy.
By using an email finder to verify emails, you can easily find email addresses for your target market and start your campaign.
Spam email marketing is a frowned upon practice because it leaves your email address blacklisted by Internet Service Providers (ISPs). This has created the need for email automation as the proper way to maximize and reduce the time spent in crafting, designing and writing emails.
Automated emails are prebuilt, where all you need to do is to select an email template that suits your customer journey. The emails are then automatically sent to the subscribers after you have set up all you need. Email automation is not expensive and time-consuming at all, and it has been proven over time to be a very efficient tool in email marketing as it eliminates costs and time.
Automation also provides useful data metrics, such as what email has the highest open rate, bounce back rate, as well as subscriber engagement, and it gives the added advantage of eliminating strenuous tasks that require manual handling. Hence, email automation is the safest way to save resources in terms of human labor and capital to achieve laid-out goals on email marketing.
4. Email Marketing is more versatile than it seems
Email campaigns are often optimized for interaction, which tends to be attractive and eye-catching to users across several digital platforms. Emails are received across different digital platforms, and mail received on laptops have a different interface from mail received on mobile devices.
In fact, statistics reveal that 1.7 billion people use their mobile phones for email inboxes. This goes to show that a lot of people use their phones as the primary source of mail, and in 2019, the number of emails opened on mobile devices accounted for 60% of the overall email engagement.
An email marketing campaign is attractive when it is optimized for responsiveness and positive reactions to increase sales. Given the fact that numerous emails are interacted with on mobile devices, it does not negate the fact that two-thirds of customers made a purchase as a direct result of emails, and these emails are ten times more effective for businesses than social media.
A lot of email marketing works, but it is important to note what works best for you. While creating a strategy, it is best to always note user engagement, and optimize for several devices. An email strategy can be implemented in so many ways, and most marketers alongside recipients often feel comfortable with lead-nurturing emails that utilize tightly connected emails that contain useful, targeted, and deliberate content. Also an intelligent email signature marketing approach will positively affect the number of replies you’ll get, so for the perfect combination you can try both. The email sequence tactic is primarily intended to promote leads through a unique marketing funnel, where the ultimate goal is to align the customer with their purchasing decisions.
5. Email marketing is easy to measure
Email marketing metrics help you see and understand how well your emails are doing. Examples include clickthrough rate (CTR), bounce rates, list growth rate, email sharing and forwarding rate, conversion rate, overall ROI, open rate, and unsubscribe rate. Each of these metrics presents methods by which the success of emails is measured.
The click-through rate is perhaps the most common marketing metric that tracks the day-to-day engagements of every individual that gets the mail. CTRs give direct insight into how many people are engaging with your content and how much they are interested in learning about the brand. With the conversion rate, you can calculate the percentage of email recipients who clicked on the link embedded in the mail to complete an action you set out.
The bounce rate is one of those valuables that don’t directly link to email marketing goals but ensure that there are no deep issues within your emails. Noting too many hard bounces can present your business as spam to the ISP.
The list growth rate is simply the rate at which your email list is growing, where you can keep tabs on who subscribes to your mail, and who unsubscribes following certain mail or actions. The list growth rate is considered one of the most valuable metrics but does not entirely guarantee or promote your marketing strategy.
Another important metric is the email sharing & forwarding rate, which, as the name suggests, is the rate at which your email recipients forward or share your mail with others. It sometimes is regarded as insignificant, but actually helps generate new contacts. A good way to leverage this is to encourage recipients to share your emails with their friends or colleagues.
The Open rate is then the percentage of recipients who open the emails you send. It is believed that high open rates are dependent on catchy subject lines, and in truth, it does have a positive impact on open rates. Although open rates show how well your email strategy is doing, it does not necessarily mean that the opened emails are completely read through.
All of these metrics are valuable to any email marketing strategy, but it is important that you know which to track based on your business goals. Your online business goals should be the directives for measuring your email marketing strategy, where the most important is the click-through rate. With this, as mentioned earlier, you can determine what is crucial for your business to survive and gain followership, as well as ROI.
I have shown you what email marketing is and shared a few facts you probably didn’t know about until now. It’s important that you know what you want to achieve before sending out emails. This helps to define your metrics for success easier, and you can better coordinate efforts toward this.
Whether you are trying to inform your customers about new products, sales, and discount offers, or you simply aim to engage them and provide value, email marketing is your one-stop strategy if executed properly.
Despite any reservations, email marketing is a useful toolbox that can help you grow your online business. To buttress its importance, here are 5 other facts about email marketing for online businesses that you should always keep close:
- For every dollar spent on email marketing, the average return on investment (ROI) is $42.
- For every ten marketers, 9 use email marketing as a method to distribute content organically.
- 81% of small businesses use email as the primary channel for acquiring customers, while 80% use it for retention purposes.
- Emails with personalized subject lines have 50 percent more open rates than others with generic subject lines.
- Sending three ‘abandoned cart’ emails to customers brings in 69 percent more orders than a single email.